AID Youth Employment Act

Key Points

• The bill creates competitive grant programs for summer and year-round subsidized employment for youth ages 14 through 24. Up to $1.8 billion could go toward summer jobs and $2.4 billion toward year-round jobs, with grants awarded to states, local governments, tribal organizations, and community-based organizations.
• The program specifically targets young people facing the toughest barriers to employment, including those who are homeless, in foster care, involved in the justice system, or living in communities with high poverty, violence, or drug overdose rates.
• Summer jobs must last at least six weeks, follow a schedule of no more than 20 hours per week, and pay at least the federal, state, or local minimum wage. Year-round jobs allow up to 15 hours per week for in-school youth and 20 to 40 hours per week for out-of-school youth.
• Beyond wages, grant funds can pay for support services like mentorship, case management, childcare, transportation, and mental health services to help participants stay in their jobs and build career skills.
• At least 20 percent of funding must go to rural areas and at least 5 percent to tribal areas, ensuring job opportunities reach communities outside major cities. Tribal organizations also get a higher federal cost share of at least 95 percent.
• The bill authorizes $375 million per year for summer jobs and $500 million per year for year-round jobs from fiscal years 2026 through 2030, totaling $4.375 billion over five years. However, Congress would still need to actually appropriate the money each year.